Boeing Q3 results: Planemaker reports $6.27 bn loss amid workers’ strike; CEO Ortberg aims to ‘reset’ labour ties | Mint

Boeing reported a loss of over $6 billion in the quarter ended September 30, thanks to a halt in operations owing to an ongoing workers’ strike and charges on its commercial aircraft and defence programmes, PTI reported.

The company posted a loss of $6.27 billion in the third quarter with an adjusted loss of $10.44 per share. The total revenue is $17.84 billion, in line with estimates.

On Wednesday, the striking union workers are expected to vote on whether to resume work or continue the strike after the company’s offer, which has been going on for six weeks and has halted operations in Seattle.

Boeing’s offer includes a hike of 35 per cent in wages over a period of four years, $7,000 ratification bonuses, and the retention of performance bonuses, according to a report by AFP.

Boeing will not be able to produce new 737s, which will provide additional revenue until the strike ends, with 33,000 workers stopping production in assembly plants in Seattle.

Ortberg bats for ‘fundamental culture change’

Boeing CEO Kelly Ortberg has announced a plan to revive the company from mounting losses. Ortberg became CEO of Boeing in August.

Boeing needs “a fundamental culture change in the company.” He said company leaders should spend time on factory floors to know what is happening and “prevent the festering of issues and work better together to identify, fix, and understand root cause,” an AFP report said quoting Ortberg in his remarks to investors.

Ortberg said he wants to “reset” management’s relationship with labour “so we don’t become so disconnected in the future,” hoping that the workers will resume work soon.

“It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again,” he added.

The CEO had earlier announced large-scale layoffs and aimed to raise funds to avoid a bankruptcy filing. Additionally, the company has to assure federal regulators that it is fixing safety concerns in 737 Max.

Since 2018, Boeing has not reported any profits.

Meanwhile, some workers have still not accepted Boeing’s proposal.

“The pension should have been the top priority. We all said that was our top priority, along with wage,” the report said quoting Larry Best, a customer-quality coordinator at Boeing. “Now is the prime opportunity in a prime time to get our pension back, and we all need to stay out and dig our heels in,” he added. He believes that the salaries should be raised by 40 per cent over three years.

“You can see we got a great turnout today. I’m pretty sure that they don’t like the contract because that’s why I’m here,” the report quotes another worker Bartley Stokes.

“We’re out here in force, and we’re going to show our solidarity and stick with our union brothers and sisters and vote this thing down because they can do better,” he added.